08/25/2026
🇺🇸 VA BUYERS & REALTORS — IMPORTANT GUIDELINE UPDATE!
This could be a BIG WIN for some VA homebuyers! 🏡🇺🇸
There has been an important update regarding how non-medical collection accounts may be calculated when qualifying for a VA home loan.
Previous calculation:
A $10,000 non-medical collection could result in $500/month being counted toward the borrower’s debt ratio.
New calculation:
5% of the balance ÷ 12 months
Using that same $10,000 collection:
$10,000 × 5% = $500
$500 ÷ 12 = only $41.67/month
🔥 $500/month vs. $41.67/month
That difference could have a MAJOR impact on a Veteran’s debt-to-income ratio, residual income, and overall ability to qualify.
REALTORS® — THIS IS WHY WE REVISIT THE “NO.”
If you have a Veteran or active-duty buyer who was previously told they didn’t qualify because of collections or their DTI was too high, it may be time for another look.
A previous “not yet” could potentially become a “YES.” 🔑🏠
And VA buyers: having a collection account does not automatically mean you cannot purchase a home using your VA benefit. Every file should be properly reviewed based on the complete VA guidelines and the borrower’s overall credit profile.
📲 Send me a message and let’s review your scenario.
Grace Ariyo | Mortgage Loan Officer
NEXA Mortgage | Lend With Grace
Helping Veterans understand and maximize the home loan benefit they earned. 🇺🇸❤️
Loan approval is subject to underwriting, lender requirements, eligibility, credit, income, residual-income requirements, and other applicable guidelines.
